Key facts
- California is experiencing a heat wave with temperatures exceeding 100°F in some areas.
- Peak electricity demand is forecast to reach 47,379 MW on Wednesday.
- Wholesale power prices have increased due to rising cooling demand.
- Solar generation is expected to decline in the evenings, increasing grid pressure.
California is bracing for a significant heat wave, with temperatures expected to soar above 100°F in parts of the state, leading to a surge in electricity demand. The California Independent System Operator (CAISO) forecasts peak power demand to approach 47,379 megawatts on Wednesday, though this remains below the record set in September 2022. Cooling demand is expected to intensify, particularly in the evenings as solar generation wanes, placing additional pressure on the power grid. Wholesale power prices are already reflecting the increased demand, with the Southern California SP15 hub seeing its day-ahead price for Tuesday evening reach $87.69 per megawatt-hour, the highest in over a week. Temperatures in the Los Angeles area are forecast to range from 85°F to 105°F, considerably higher than average, while Sacramento could reach 100°F on Thursday. Maximum temperatures across California are predicted to peak on Thursday before gradually decreasing.
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